Emerald Group ERP Development / Customization Requirement documents

Emerald Group (herein referred as EG or company) has been working in the domain of
telecommunication services domain in the following countries (and their base currencies):

S.No Country Base Currency International currency 1 International currency 2

1 India INR - -
2 Uganda Uganda Shillings USD Euro
3 Burundi Burundian Franc USD Euro
4 Ghana Ghanian Cedi USD Euro
5 Zambia Kwacha USD Euro
6 UAE AED USD -
7 Botswana Botswanan Pula USD Euro
Company wishes to develop or customized existing ERP systems which shall benefit its
teams and operations in terms of efficient management, decision making at all levels, data
and information flow from top to bottom and vice versa. We wish to develop a system in
such a way that employees at each and every level fills their own data in the system which
inturn becomes information at the middle management level and gradually becomes
knowledge at the top management of the company.

Operations Information: company has been working in the domain of Installation and
commissioning services, RF Services – planning, Single site verification (SSV), cluster drive,
optimization, Distributed Antenna System (DAS), Managed Services, Operation and
Maintenance of active as well as passive network. Group has been working on these services
in the countries of operations mentioned above.

Typical Organization Structure: A typical mix of pyramidal and flat organisation structure.

Country Manager

Project Commercial Finance Admin

Managers Manager Executive Executive

Site Engineers
Project Flow:

Process Flow: The following is the typical process flow which teams are following at the
ground level or at the circle level or at the site level .

 Company’s business model is it typical be B2B basis.

 Every country of operation of the company has been decentralise. this means every
country has a different company being registered at the country level. therefore
every country is an Individual profit centre . we strongly believe that every country of
operation should run on their own which means they should generate their own
revenue ,manage their own costs ,book their own profit ,file their individual tax
returns in short operate as an individual business unit.
 the company's customers are global that is , 1 customer can operate in multiple
geographies as an independent business units. in the similar way , emerald group
also operates country specific as in individual business units at the country level .
 First of all, Customer give the site to work on based on the various operations which
the group is currently carrying on.
 customer issues purchase order which details the site name, site id, location of the
site, rate, commercial terms and conditions , penalty clauses ,payment terms,
taxations etc. Please note : one site with the same site ID can come to us multiple
times for execution but under different project names or under different activities to
be carry out.
 a typical purchase order has more than one site.
 PO Reconciliation in terms of : PO Completion, work done but PO Not received, PO
Work done completion, Milestone tracking for billing. (Same for Vendor POs)
 as soon as the site has been allocated by the customer ,our project manager starts
planning the execution of the site(s) . Please note: sites are distributed and are
located at various nooks and corners of the country of operations.
  The site execution requires site engineers to physically visit the site . The site
engineer is a accompanied by 3 site technicians . they use local transportation
medium or at times company owned vehicles.
 A typical site takes around 3 to 7 days of execution .in this period, The team stays at
the local place in a lodge . during this period, The company provide them additional
money In the form of dearness allowance which is calculated on the per day basis for
all the days employes are working out of or away from their base locations.
 Majority of the work of the company is fieldwork . this requires lot of transportations
and movement all across the country of operations . this also requires a lot of cash
transactions and a daily movement of cash from the office of the company 2 the
employees working at sites. these cash transactions are in the form of mobile money
,cash disbursed through agents or at times the cash being deposited to the
respective accounts of employees . this is to be noted that a lot of transitions R
driven by cash and not the wire transfer or the account transfer .
 Now, once the employees return to the office after completing the site as per
required norms , they have to settle the advances they have received against the
expenses they have incurred. the expenses are being certified by project manager
and the country manager . which is then accounted in the books of accounts . right
now company uses tally as accounting software.
 During the progress of the site , projectmanager has to send a daily progress report
to the company as well as to the customer , which is essentially the stage wise
completion report per site of the work being given by the customer . the same
report goes to the management of the company.
 company pays its employees a monthly renumeration which is calculated on the
number of days employee has worked in a month.
 for all the exparties, that is the international employees , Company gives a 21 days
paid leave per year . during this period, The employee can go to their hometown for
21 days ,the flight tickets are being sponsored by the company .

The Finance part: The finance Department plays a very important role in our line of business
. the finance Department through its finance executive's maintains a record of all expenses ,
sales , tax liabilities , other current liabilities etc. the company uses tally as an accounting
software.

Types of Entries: the following are the types of entries which we carry out on a day in day
out basis :

 Sales
 Bank Statement – Payment and Receipt Voucher and Contra Voucher;
 Salary
 Employee Exp- Journal;
 Purchases- Journal;
 Debit Notes- Debit Note Voucher;
 Credit Notes- Credit Note Voucher.
 Tax liabilities
Now, there are various kinds of transactions happening, sales, employee expense voucher
bookings, purchase expenses booking , subcontractor expenses bookings, payments to the
employees , payments to the vendors , subcontractor payments , guest house expenses ,
office expenses ,business development expenses , tax payments , other miscellaneous
expenses . Now Since our operations are based on per site basis, our expenses are also
classified either in per site basis or per activity basis. in the same way our sales or revenue is
also based on per site basis or per activity basis or monthly fix revenue. therefore, it is highly
require that we start monitoring all our transactions, or all over expenses on per site – per
project basis.

Now, Tally is a wonderful finance ERP software, which can give financial over view of
business, in a highly comprehensive way. But there are few short comings because of which
we want to develop and ERP. The following are the points which we want in the ERP along
with all the functions in the Tally:

 every transaction to be recorded under : projectwise – activitywise – sitewise or else

general expenses or else admin expenses . For example : advance given to
employees should be recorded per project – activity -site basis , Same for fuel
expenses , food expenses at site etc.
 we should come to know how much we have spent on a particular site , which
should be matched by the projected revenue of that particular site (given by
purchase order by the customer).
 We should be able to track Projectwise, sitewise activity wise profit and loss rather
than seeing the complete organisations profit and loss account . company’s profit
and loss account should be equals to the individual site, project , activity profit and
loss plus administration and other miscellaneous expenses.
 we would like to give each site a budget so that the projectmanager should be aware
that how much money he can demand for the completion of a particular site , how
much is the expenses being incurred against the budgeted .
 Company wants its employees to use the system on a real time basis and the system
should give them intelligent inputs we shall help them in increasing their productivity
and sharpen their decision-making for the business , for their own responsibilities ,
for their own key result areas .
 So the project manager should know on a per site basis , per project basis that where
he is standing in terms of targeted profit and loss versus achieved . what measures
should be taken by him at the site level , at his project level so as to increase the
productivity of the team and therefore increase in the profits .
 at the country manager level , he should know what is the real time status of
targeted versus achieved para meters of completion , expenses , and profit and loss
for all the sites , of all the projects , of all the activities , at the country level.
 add the finance executive level , he should be able to track the budgeted versus the
achieved status off the profit and Loss, so that he can also raise the flags as soon as
he smells figures may go beyond the budgeted . rather than executing only the
monotonous and typical financial entries .
 at the top management level , company should take decisions on a broader level,
how to go about projects per customer basis whether to increase or decrease the
 budget, overall cost distribution, Profit and loss - site basis – project basis – activity
basis – country basis.
 At the system level , there should be automatic flags being generated at various
milestones eg: actual versus budget cost per site, per project , per activity etc. the
ratio of various support costs to the project cost . cost breakup structures like: fuel
cost , maintenance cost , admin cost ,office cost ,rental expenses ,purchase expenses
etc.
 system should work on the stringent lines which we call them policies eg: purchase
should be in line with the budget , fair purchase policies , no biased basis etc .
 system should be capable of handling inventory operations.
 System should be able to calculate taxes , liabilities , revenues , and other aspects of
the business which tally suffices.
 entire finance Department should use only this ERP or the system and not any other
system In addition . Tally will be maintained at the centre level and not at the
country level henceforth.
 the system should be cloud based with restrictions at the user levels in terms of
editing , and viewing the data .

Macro Points related to Finance Process Flows:

ETel has cash flows from Bank, Cash and Mobile Money. We maintain cash book For every
transaction in specified format. cash Bing disbursed from the bank and from the bank we do
various kinds of transactions like statutory payments , vendor payments ,cash withdrawals
,salary transfers , etcetera etcetera .

from cash we do various kinds of transactions like pretty cash , grocery purchases ,tools
purchases ,employee advances ,salaries ,vendor payments, guess house rent payment
statutory payments etcetera .

so we have lots of transactions being happened from the bank as well as from cash book
and from mobile money . therefore ,we need to reconcile all the 3 mention books on regular
intervals .

so , in the finance module, all the functions of tally are very important .

we have a specific requirement of posting various expenses with the clear marking Of site
ids. All expenses are to be booked with site ids, so that we can bifurcate expenses based on
project – site ids. There are few expenses which are indirect in nature like business travel,
business promotion, guest house expenses, office and admin expenses etc. These are to be
booked with specific cost heads.

All employee expenses to be booked against site ids or else indirect expenses.

Expenses bookings should be on the same method like we have in Tally: while booking
expenses Expense ledger, Party Ledger, Cash/Bank/Mobile Money ledger to be hit.

In similar way, Sales ledger, debtor, bank/cash ledger to be hit while booking sales.
Vendor Management and Inventory management systems to be part of ERP, though the
bookings/transactions of inventory to be linked with site ids , projects.

HR Attendance module to be inbuilt in such a way , on that particular day, when an engineer
visits say 4 sites in a day, then we should be able to book his attendance on these 4 sites,
and his expenses of that particular day : attendance, travel, fuel etc should be divided on
these 4 sites.

All process flow should implement budgeting , approvals and timely flagging of predefined
event.